It’s that time of year again – time to set your new year’s resolutions. Common goals usually revolve around weight loss, but do not forget about the other areas of your life that might benefit from a fresh start. That way, if you fall off the diet and fitness wagon, you will have other things to focus on. Your financial health is an area that deserves high priority goals and regular attention if you want to build wealth in the future. If you haven’t made a financial goal part of your new year’s resolutions, there’s still time to add one! Here are some areas that you can consider.
If you haven’t lived on a budget before, this is the year to start! It can take up to three months to get comfortable with budgeting but it’s well worth the journey. It’s amazing how much further you can stretch your paycheck when you are making a plan for every dollar. If you have a solid budget but still wish you had more money at the end of the pay period, start this year off by identifying areas where you can make cuts even further in areas such as food or entertainment. To get started, check out our blogs on budgeting. If you have been financially impacted by the pandemic, you may want to consider a crisis budget to get through the more difficult times. A crisis budget will limit your expenses to the necessities, and then when things level out, you can adjust to a regular, more comfortable budget.
Even if your goal isn’t large, saving money is impactful. It’s important to be intentional and specific throughout the year. One of the best ways to put away the most money you can is to live on a budget. Creating a budget allows you to identify expenses you can cut so that more money can be put away. Take the time to write down your goals and make them a part of your weekly or monthly budget. Make saving money a priority, automatic and intentional. In light of the uncertain times we experienced the last three years, having a well funded savings account in 2023 will make any future crises less overwhelming. For tips on achieving your savings goals, read our Savings blog series.
Home Ownership Goals
If this is the year you want to buy a new home, perhaps your first home, there are two goals you should set to put yourself on the right path. First, save for a down payment. This should be a separate savings goal from your emergency funds, travel funds, etc. Knowing how much to save depends on the type of mortgage you are going to apply for and the price range of homes you will shop for. Your second goal should be to educate yourself on the mortgage options and how to create a plan and a budget to get you on the road to homeownership. CCCSMD offers Pre-Purchase counseling and Homebuyer Workshops to help you get started today.
Now is the time make your financial health part of your 2023 new year’s resolutions. Creating and living on a budget, trying to build your savings and achieving homeownership aren’t always easy and that’s why CCCSMD is here to help. Contact us today to set yourself up to meet your financial goals.